Fletcher Building (FBU) Investor Day 2025 Presentation summary

Strategic review and organisational transformation

• Completed a comprehensive strategic review, leading to a major turnaround and simplification of the business structure, including disestablishment of the Australian and Steel Divisions and a shift to five core divisions focused on manufacturing and distribution of building products and materials.

• Board and executive leadership team refresh completed in 2024–2025, bringing in significant industry experience and new leadership.

• Decentralised operating model implemented, empowering business unit leaders with greater autonomy, accountability, and customer focus, while reducing corporate overhead by approximately $30m.

• Immediate actions included $700m capital raising, Tradelink sale, closure of underperforming units (Clever Core, MADE by Laminex), and ongoing divestments to improve financial resilience.

• Targeted cost reductions of ~$200m and ~620 FTE reduction in FY25, with further structural savings and continuous improvement planned.

Financial guidance and capital allocation

• Medium-term net debt target set at $400m–$900m, with dividends suspended until the target is met; capital structure reset to support growth and resilience.

• FY25 EBIT (pre-significant items) expected between $370m–$375m, or $386.4m–$391.4m excluding a $16.4m P2W settlement loss.

• Significant items for FY25 expected to total $573m–$781m, mainly from restructuring, impairments, and legacy project costs.

• Disciplined capital allocation framework in place, with ROIC targets above WACC for all business units and capex approvals tied to industry-specific hurdle rates.

• Focus on reducing working capital cyclicality and aligning stay-in-business capex with depreciation.

Business unit performance and growth initiatives

• Five core divisions established: Light Building Products, Heavy Building Materials, Distribution, Residential & Development, and Construction, each with clear market focus and leadership.

• PlaceMakers, the leading distribution brand, is refocusing on trade customers, relaunching rural JVs, and streamlining operations to recover market share lost since 2019.

• Heavy Building Materials division leverages unique assets like Golden Bay Cement, with industry-leading decarbonisation initiatives and a target to be coal-free by 2030+.

• Laminex Taupō plant investment to produce OSB and FOSB panels, targeting mid-cycle incremental EBIT of ~$40m by FY31, with first board production in early FY27.

• Residential & Development and Construction divisions positioned to benefit from regulatory and market tailwinds, with a focus on housing and infrastructure growth.